In 1922, Babe Ruth made $52,000, playing for the New York Yankees. Babe Ruth invented the home run. Babe Ruth hit 54 homes runs before anyone hit one. Ruth created baseball as we know it today.
In 1930, Mr. Ruth made $80,000. Babe was criticized for making more money than President Hoover.Mr. Ruth said "well, I had a better year than President Hoover." In 1930, because it was the Great Depression, prices declined and therefore $80,000 was worth even more.
In 1930, consumer goods prices, a can of Campbell's soup was 6 cents, a new Chevrolet was $600, gas was 17 cents a gallon.
Today, a can of Campbell's soup is about one dollar, a new Chevy Malibu is $25,000, gas is about $4 a gallon.
In 1930, Harvard tuition was $400 per year, cost of a baby delivery was $100, and an ounce of gold was worth $17. Today, gold is $1,800 an ounce. That difference for a stock in today's dollars would be $110,000.
What is $80,000 in today's dollars? In today's dollars $80,000 would be $1.4 million adjusted for the CPI.
But, we don't live the same way we did in the 1930's. For one thing, it's cheaper to manufacture goods today.
Today we are in a service based economy, and the cost of living increases only because the cost of services increase? Cost of living depends on your "purchasing pattern". Different families can have different 'inflation levels'?
So how rich was the guy? Not too bad.
Remember, in Mr. Ruth's day, there was no television and there was no such thing as selling advertising or athletic endorsements.
Today, athletes get paid even more because they help companies, such as Nike, make more money through their endorsements.
In 1930, consumer goods prices, a can of Campbell's soup was 6 cents, a new Chevrolet was $600, gas was 17 cents a gallon.
Today, a can of Campbell's soup is about one dollar, a new Chevy Malibu is $25,000, gas is about $4 a gallon.
In 1930, Harvard tuition was $400 per year, cost of a baby delivery was $100, and an ounce of gold was worth $17. Today, gold is $1,800 an ounce. That difference for a stock in today's dollars would be $110,000.
What is $80,000 in today's dollars? In today's dollars $80,000 would be $1.4 million adjusted for the CPI.
But, we don't live the same way we did in the 1930's. For one thing, it's cheaper to manufacture goods today.
Today we are in a service based economy, and the cost of living increases only because the cost of services increase? Cost of living depends on your "purchasing pattern". Different families can have different 'inflation levels'?
So how rich was the guy? Not too bad.
Remember, in Mr. Ruth's day, there was no television and there was no such thing as selling advertising or athletic endorsements.
Today, athletes get paid even more because they help companies, such as Nike, make more money through their endorsements.
I don't begrudge athletes for making the money they do.
